Can I borrow from Amazon against my inventory even though I have SBA loan?

by an investor from New York University

4 years ago

Amazon will use our inventory that is sitting in Amazon warehouses as collateral but I think the bank also considers our inventory collateral. We cannot borrow more from the bank.

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5 comments

professional from Missouri State University - College of Business Administration

We specialize in helping companies in your position identify obtain the right facility for your situation. Happy to discuss your situation directly. --@----.com

4 years ago | like reply | 0 likes

lender from University of Missouri - Columbia

Did your lender set you up with any kind of A/R and inventory line at close? If so then they would be able to increase that line. Typically Amazon working capital is pretty expensive compared to bank debt. A line should always be put in place foe just such a situation. Even a small line at close can be increased based on growth. The issue is lien position. If you don't have a line at close, the WC assets will be tied to the SBA loan. If you have a line with 1st position on A/R and Inventory, you have more flexibility. If your lender did this at close you should be able to get an increase.

4 years ago | like reply | 1 like

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